PSE market is still resilient, no major damage to our equity. Just a slight correction from the 45xx Top. Could this be a trap for bull people and be trapped on the highs.
In my own opinion, PSE might be forming exactly what happened to DOW. The inverse head and shoulder pattern that has a downward target of 10400-10800.
Now that PSE is still hanging on, I made above a short graph how the inverse head and shoulder may happen also to PSE. Head is the 45xx point, and now we are possible on the right shoulder, with resistance ranging from 4350-4390. If it doesnt go above that level, it might be the right neck. And next would happen would be a possible breakdown and formation of the Inverse Head and Shoulder with a target of 3700-3800. A rally back to the 45xx level will invalidate the inverse H and S scenario.
Be cautious now that Foreign Equities are prone to selloffs. Think wisely why we are just floating around. Are the big traders caught up also and dont want to sell at a loss, or its just a consolidation that many buyers are still pushing up the prices.
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